Technology

In China, 87 percent of people trust AI, compared with just 32 percent in the US, according to an Edelman poll.

China’s public is far more trusting of artificial intelligence than their peers in the United States and other Western countries, a survey has found.

In China, 87 percent of people said they trusted AI, compared with 67 percent in Brazil, 32 percent in the US, 36 percent in the United Kingdom, and 39 percent in Germany, the Edelman poll released on Tuesday showed.

More than seven in 10 Chinese respondents said they expected AI to play a role in solving a range of societal issues, including climate change, mental illness, poverty and polarisation.

Only one-third of Americans said they expected AI to reduce poverty and polarisation, though half predicted a positive impact on climate-related challenges.

While 54 percent of Chinese said they embraced greater use of AI, just 17 percent of Americans answered the same, according to the survey.

Trust was highest among young people, though still much lower in Western countries.

Eighty-eight percent of Chinese aged 18-34 said they had faith in the technology, compared with 40 percent of Americans in that age group.

“For businesses and policymakers, this divergence presents a double challenge,” Edelman Senior Vice President Gray Grossman said in a report accompanying the survey.

“In high-trust markets, the task is to sustain optimism through responsible deployment and straightforward evidence of benefit. In low-trust markets, the task is to rebuild confidence in the institutions behind the technology.”

The survey results come as the US and China are locked in a battle for tech supremacy, with firms in both countries rolling out increasingly sophisticated AI models.

While the US is widely seen as still having an edge in producing the most powerful AI, Chinese firms such as Alibaba and DeepSeek have made major inroads in recent months with “open” language models that offer customers much lower costs.

Last month, Airbnb CEO Brian Chesky made headlines when he revealed that the short-term rental platform preferred Alibaba’s Qwen over OpenAI’s ChatGPT.

“It’s very good. It’s also fast and cheap,” Chesky told Bloomberg in an interview.

Saudi Aerospace Solutions (SAS) has signed an agreement to purchase 100 electric helicopters from the Chinese company Vertaxi. This reflects Saudi Arabia’s commitment to strengthening its technological partnership with China in the field of future aviation. Saudi Arabian Airlines confirmed its intention to use these small, electric-powered aircraft, acquired through the “Vertaxi” deal, to transport pilgrims between Mecca and Jeddah, as well as visitors to major sporting events in Riyadh and other tourist destinations. The low-altitude economy (LAE), represented by “Vertaxi,” is a strategic and emerging sector in China, combining advanced manufacturing with new business models such as smart cities. SAS’s vision is to establish Saudi Arabia as a regional hub for the LEA by 2030.

  Through this deal with China’s Vertaxi and Saudi Aerospace Solutions Group, it continues to pursue its ambitious goals of connecting the world to Saudi Arabia. This includes offering several advantages, such as linking multiple destinations via this advanced Chinese electric aircraft and supporting them with air routes between the major airports where the Saudi group operates. This initiative aligns with Saudi Arabia’s vision of economic diversification and the shift towards smart transportation models that could impact future technological and regional balances. The 8th China International Import Expo witnessed the signing of an agreement between Saudi Aerospace Solutions Group and Vertaxi, a Chinese company specializing in electric vertical takeoff and landing (eVTOL) aircraft. Saudi Aerospace Solutions Group signed a letter of intent to purchase 100 Vertaxi M1 electric cargo VTOL aircraft.  The electric aircraft included in the deal are among the first fully electric vertical takeoff and landing (eVTOL) vehicles.

 These aircraft are distinguished by their ability to take off and land vertically, eliminating the need for traditional airports. They can travel up to 175 km at speeds of up to 260 km/h, offering significant time savings for individual passengers compared to other options, and can accommodate up to six passengers.

 Through this deal with China, Saudi Arabia, officially through the Saudi Solutions Group, aims to enter a new era and achieve leadership in the aviation and air transport sector in the region. The Saudi electric aircraft deal with China will provide unprecedented solutions and new air routes to connect pilgrims to Mecca during the Hajj and Umrah seasons. It will also enable visitors to Saudi Arabia to quickly access sporting and entertainment events and tourist sites, in addition to connecting the Kingdom’s mega-projects within the framework of Saudi Vision 2030 with distinguished air services that meet the future aspirations of Saudis. Furthermore, this deal achieves a highly important objective for Saudi Arabia, which is continuing the implementation of initiatives supporting sustainability and environmental conservation (electric aircraft), which are characterized by their reduced carbon dioxide emissions. This Saudi deal with China will contribute to providing more flights and reducing travel times by up to 90%, including to long-distance tourist destinations. It will also offer effective transportation solutions in areas congested with pilgrims, travelers, and traffic jams. Furthermore, this Saudi-Chinese agreement will contribute to reducing traffic congestion, saving time, expanding the range of premium services for VIP guests visiting Saudi Arabia, and providing a seamless and luxurious travel experience. This will also contribute to boosting tourism and business within the Kingdom.

 Saudi Arabia is relying on the air transport electrification deal with China as a practical path to decarbonizing this vital and important sector, which is currently characterized by high emissions and environmental damage. Currently, environmentally friendly and low-carbon-emission electric aircraft represent a very small percentage of the global aviation fleet. Saudi Solutions Company will collaborate with the Chinese company Vertaxi to develop local applications for these aircraft.  Electric vertical takeoff and landing (eVTOL) cargo services in Saudi Arabia, including low-level logistics, marine power transport, and security inspection.

 This Saudi deal with China comes at a time when China is accelerating its plans to strengthen its global digital presence. Tencent (the Chinese giant) is also simultaneously taking new steps in the Saudi market through cloud investments, in line with the goals of the Kingdom’s Vision 2030 for digital transformation. Dawson Tong, senior executive vice president of Tencent and CEO of its Cloud and Smart Industries Group, confirmed that “the new data center in the Saudi capital, Riyadh, represents a significant growth opportunity,” explaining that the Chinese partnership with Saudi Arabia is nearing completion of its final launch stages. He officially confirmed that “we already serve many Chinese companies that are increasing their investments in Saudi Arabia, and a number of our partners have lined up to benefit from the new data center in Riyadh, which allows us to expand not only within the Kingdom but throughout the entire region.”

  In this context, Saudi and Chinese companies signed 34 investment agreements on the sidelines of Chinese President Xi Jinping’s visit to Saudi Arabia in December 2022. These Saudi-Chinese agreements covered various sectors, including green energy and green hydrogen, solar photovoltaic energy, information technology, transportation and logistics, medical industries, housing, and construction, among others. Saudi Arabia’s Vision 2030 offers diverse investment opportunities in partnership with China across multiple sectors as part of the Saudi government’s efforts to diversify the economy away from crude oil, which is currently the Kingdom’s primary source of income.

 In the future industries sector, the Saudi Business Industries Company (Sahl Al-Aamal) signed a cooperation agreement with two Chinese companies: China New Energy and Eurasia. The aim is to establish a specialized electric vehicle manufacturing plant in Saudi Arabia, with investments totaling one billion Saudi riyals. This new Saudi-Chinese project also aims to support Saudi Arabia’s drive towards sustainable transportation, increase local content, and create quality job opportunities through partnership with Chinese companies.

 These Saudi steps towards partnership and cooperation with China come within the framework of the “Vision 100 strategy” to expand its international partnerships and enhance its ability to transfer advanced technologies and knowledge to the Saudi market, thus contributing to driving economic development and achieving sustainability.

  From the preceding analysis, we conclude that the Saudi-Chinese partnership, through the helicopter deal with the Chinese company Vertaxi and others, promotes environmentally friendly industrial innovation.  With the joint Saudi-Chinese effort to strengthen partnership in artificial intelligence and petrochemicals to develop sustainable and environmentally friendly technologies, Saudi Arabia has affirmed its readiness to welcome Chinese investments through the development of industrial cities, aiming to increase the number of its factories to more than 26,000 by 2030 through cooperation with China.

Nov. 18 (UPI) — Facebook owner Meta can keep the WhatsApp mobile messaging app and the Instagram social media site in a federal trial first brought by the Federal Trade Commission in 2020.

Washington D.C.-based Judge James Boasberg ruled Tuesday that the FTC did not prove its claim that Meta has maintained a monopoly on social media platforms, CNBC reported.

“Whether or not Meta enjoyed monopoly power in the past, though, the agency must show that it continues to hold such power now,” Boasberg wrote.

“The court’s verdict today determines that the FTC has not done so,” he added.

Meta officials said in a statement to NPR that Boasberg’s ruling affirms that social media remains competitive.

Boasberg in 2021 dismissed the case citing a lack of evidence that Facebook held “market power” over social media.

The FTC amended and refiled its complaint in August 2021, providing more detail on user data and comparisons to competitors, including Snapchat, the discontinued Google+ social network and Myspace.

The FTC also argued Meta engaged in a “buy or bury” strategy to monopolize social media when it paid more than market value to buy Instagram in 2012 and when it bought WhatsApp in 2014, according to NPR.

The only way to resolve the alleged monopoly was to require Meta to spin off Instagram and WhatsApp as independent companies, the FTC argued.

The social media marketplace has changed greatly over the past five years since the federal agency first accused Meta of monopolizing social media, Boasberg wrote.

“While it once might have made sense to partition apps into separate markets of social networking and social media, that wall has since broken down,” Boasberg wrote.

He cited the rise of TikTok and called it “Meta’s fiercest rival,” which he called evidence of a competitive social media marketplace.

During the trial that concluded in May, Meta’s legal team argued it faced plenty of competition and only bought WhatsApp and Instagram because they are quality products that were easier to buy instead of replicating.

During the trial, Meta CEO Mark Zuckerberg testified that buying Instagram was easier than creating a new product that would compete with it.

Paramount Skydance is reportedly preparing a bid to acquire Warner Bros Discovery.

Variety, an entertainment industry trade magazine in the United States, first reported the looming proposal on Tuesday, quoting sources familiar with the talks.

The publication said the company formed an investment consortium with the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi to submit a $71bn bid for Warner Bros Discovery.

The report said Paramount Skydance would contribute about $50bn towards the proposed acquisition with the remainder coming from the wealth funds.

Paramount Skydance has described the involvement of the sovereign wealth funds as “categorically inaccurate”.

Paramount Skydance is now led by David Ellison, the son of Larry Ellison, cofounder of Oracle and a close ally of US President Donald Trump. Warner Bros Discovery previously rejected a bid from the Ellison family, which holds all board voting power at Paramount Skydance.

Neither Paramount nor Warner Bros Discovery responded to Al Jazeera’s request for comment.

Under the proposed structure, the wealth funds would take small minority stakes and each would receive “an IP, a movie premiere, a movie shoot”, the report said.

Warner Bros Discovery – home to the DC film universe and television studios, HBO, CNN, TNT and Warner Bros Games – is on the verge of breaking up, crippled by declines in its television business.

The company said in October that it has been considering a range of options, including a planned separation, a deal for the entire company or separate transactions for its Warner Bros or Discovery Global businesses.

Nonbinding, first-round bids are due on Thursday.

Paramount is the only company currently considering a full buyout according to the US news website Axios. Warner Bros Discovery also wants to have a deal by the end of the year, according to Axios’s reporting.

Political pressures

The looming deal is shaped in part by how the Trump administration views coverage by the news outlets owned by Warner Bros Discovery.

Netflix and Comcast are also reportedly exploring bids, but any Comcast-led effort would need regulatory approval.

Trump has also repeatedly attacked Comcast over its TV news coverage, saying the company “should be forced to pay vast sums of money for the damage they’ve done to our country”.

Comcast owns NBC News and its subsidiary Versant Media, the parent company of MS-Now – formerly MSNBC – and CNBC.

CBS, owned by Paramount Skydance, has taken a more conciliatory posture towards the administration, including hiring a Trump nominee as an ombudsman to investigate bias allegations after settling a Trump lawsuit claiming its flagship programme 60 Minutes deceptively edited an interview with 2024 Democratic presidential nominee Kamala Harris, who lost to Trump.

Paramount Skydance also recently tapped Bari Weiss, a right-leaning opinion journalist with no television background, to lead the CBS broadcast news division.

Any of the deals that are being discussed raise antitrust concerns. But if Paramount Skydance, which already owns CBS, now purchases CNN as part of Warner Bros Discovery, “that would create an added civic risk”, Rodney Benson, professor of media, culture and communication at New York University, told Al Jazeera.

“Such a deal would put two leading news outlets under the roof of the same large, multi-industry conglomerate with avowed close relations to the party in power – and that could lead to more conflicts of interest, less independent watchdog reporting and a narrowing of diverse voices and viewpoints in the public sphere,” Benson said.

Warner Bros Discovery remains the parent company of CNN.

On Wall Street, Paramount Skydance shares were up 1.7 percent in midday trading. Warner Bros Discovery was also up 2.8 percent from the market open. Comcast gained 0.5 percent, and Netflix climbed 3.5 percent.

The dip comes amid doubts about future US interest rate cuts and a risk-averse mood in broader markets.

Bitcoin fell below $90,000 for the first time in seven months in the latest sign that investor appetite for risk is drying up across financial markets.

The cryptocurrency began to rebound as United States markets opened on Tuesday. However, Monday’s steep drop in the risk-sensitive asset had already wiped out all of its gains for the year.

It is now nearly 30 percent below its peak of $126,000 in October.

It was down 0.5 percent at $91,338.47 during European trading hours, after slipping as low as $89,286.75.

About $1.2 trillion has been wiped off the total market value of all cryptocurrencies in the past six weeks, according to market tracker CoinGecko.

Market participants said that a combination of doubts around future interest rate cuts by the US Federal Reserve and the risk-averse mood in broader markets, which have wobbled after a long rally, was dragging down crypto.

“The cascading selloff is amplified by listed companies and institutions exiting their positions after piling in during the rally, compounding contagion risks across the market,” said Joshua Chu, co-chair of the Hong Kong Web3 Association.

“When support thins and macro uncertainty rises, confidence can erode with remarkable speed.”

Speculators who had put money into crypto in the hopes of supportive US regulation have started to pull back, causing steady outflows from exchange traded funds (ETFs) and similar instruments in recent weeks, said Joseph Edwards at Enigma Securities.

“The sell pressure here isn’t extraordinary, but it’s coming at a relative weak point on the buy side … a lot of retail buyers were stung during the flash crash last month,” he said, referring to an October crash in which there were $19bn in liquidations across leveraged positions.

Crypto stockpilers such as Strategy, miners such Riot Platforms and Mara Holdings, and exchange Coinbase have all slid with the souring mood.

‘Underwater’

There has been a boom in public crypto treasury companies this year, with small companies in unrelated sectors becoming crypto proxies by announcing plans to buy and hold cryptocurrencies on their balance sheets.

But Standard Chartered has estimated that a drop below $90,000 for Bitcoin could leave half of these companies’ Bitcoin holdings “underwater” – a term that typically refers to assets worth less than what was paid for them.

Listed companies collectively hold 4 percent of all the Bitcoin in circulation, and 3.1 percent of the ether, Standard Chartered said.

The cryptocurrency Ethereum (ETH) has also been under pressure for months, and has lost nearly 40 percent of its value from an August peak above $4,955.

“All in all, sentiment is pretty low in crypto and has been since the leverage wipeout of October,” said Matthew Dibb, chief investment officer at Astronaut Capital.

The announcement underscores AI industry’s insatiable appetite for computing power as companies race to build systems that can rival or surpass human intelligence.

Microsoft and Nvidia plan to invest in Anthropic under a new tie-up that includes a $30bn commitment by the Claude maker to use Microsoft’s cloud services, the latest high-profile deal binding together major players in the AI industry.

Nvidia will commit up to $10bn to Anthropic and Microsoft up to $5bn, the companies said on Tuesday, without sharing more details.

A person familiar with the matter said both the companies have committed to investing in Anthropic’s next funding round.

The announcement underscores the AI industry’s insatiable appetite for computing power as companies race to build systems that can rival or surpass human intelligence. It also ties major OpenAI-backer Microsoft, as well as key AI chip supplier Nvidia, closer to one of the ChatGPT maker’s biggest rivals.

“We’re increasingly going to be customers of each other. We will use Anthropic models, they will use our infrastructure and we’ll go to market together,” Microsoft CEO Satya Nadella said in a video. He added that OpenAI “remains a critical partner”.

The move comes weeks after OpenAI unveiled a sweeping restructuring that moved it further away from its non-profit roots, giving it greater operational and financial freedom.

The startup has since then announced a $38bn deal to buy cloud services from Amazon.com as it reduces reliance on Microsoft. Its CEO, Sam Altman, has said OpenAI is committed to spending $1.4 trillion to develop 30 gigawatts of computing resources – enough to roughly power 25 million US homes.

Still, three years after ChatGPT’s debut, investors are increasingly uneasy that the AI boom has outrun fundamentals. Some business leaders have noted that circular deals – in which one partner props up another’s revenue – add to the bubble risk.

“The main feature of the partnership is to reduce the AI economy’s reliance on OpenAI,” D A Davidson analyst Gil Luria said of Tuesday’s announcement.

“Microsoft has decided not to rely on one frontier model company. Nvidia was also somewhat dependent on OpenAI’s success and is now helping generating broader demand.

AI industry consolidating

Founded in 2021 by former OpenAI staff, Anthropic was recently valued at $183bn and has become a major rival to the ChatGPT maker, driven by the strong adoption of its services by enterprise customers.

The Reuters news agency reported last month that Anthropic was projecting to more than double and potentially nearly triple its annualised revenue run rate to around $26bn next year. It has more than 300,000 business and enterprise customers.

As part of Tuesday’s move, Anthropic will work with Nvidia on chips and models to improve performance and commit up to 1 gigawatt of compute using Nvidia’s Grace Blackwell and Vera Rubin hardware. Industry executives estimate that one gigawatt of AI computing can cost between $20bn and $25bn.

Microsoft will also give Azure AI Foundry customers access to the latest Claude models, making Claude the only frontier model offered across all three major cloud providers.

“These investments reflect how the AI industry is consolidating around a few key players,” eMarketer analyst Jacob Bourne said.

Despite the looming deal, Microsoft shares are down 3.2 percent in midday trading. Nvidia is also trading 1.9 percent lower than at the market open, and Amazon has fallen 4 percent. Tech stocks remain under pressure after a cloud services outage earlier on Tuesday. Neither OpenAI nor Anthropic is publicly traded.

Asian and global stock markets started the week cautiously as investors navigated geopolitical tensions and a packed week of corporate earnings and U.S. economic releases. A deepening dispute between China and Japan weighed on Tokyo shares, while market participants prepared for key data, including Thursday’s delayed U.S. September jobs report and Nvidia’s earnings due Wednesday after market close.

Expectations for a U.S. interest rate cut in December have fallen below 50%, following recent signals from policymakers. This shift has increased pressure on technology stocks, which are highly sensitive to interest rate changes.

Asia Markets and Geopolitics

Japan’s Nikkei fell 0.2%, with tourism and retail stocks hit hard after China advised its citizens against visiting the country. Major declines included Isetan Mitsukoshi, Muji parent Ryohin Keikaku, and Shiseido, each down around 10%.

In Australia, BHP dropped 0.6% after a UK court found the company liable for a dam collapse in Brazil, leaving the overall index relatively flat. Hong Kong’s Hang Seng and China’s CSI300 indexes each fell roughly 1%.

Japan’s economy contracted for the first time in six quarters, partly due to U.S. tariffs, while a reported $110 billion stimulus plan influenced bond markets, pushing 20-year yields to a 26-year high. Analysts caution that shaky fiscal credibility could further pressure the yen, drawing parallels to Britain’s recent market turmoil following uncertainty over tax hikes.

U.S. Data and Treasury Yields

The U.S. Treasury 10-year yield held steady at 4.163% in Asia trading, following a slight rise on Friday. Wall Street indexes ended last week mixed, with a modest drop for the S&P 500 and small gains for the Nasdaq.

Thursday’s U.S. September jobs report is expected to be closely watched, although private-sector surveys have already indicated a slowdown. Analysts note that the headline data may be too stale to significantly shift market expectations, with CPI data remaining the key factor for Fed policy.

Corporate Earnings Spotlight

Investor attention this week is also on U.S. corporate earnings. Retail giants Home Depot, Target, and Walmart are reporting results, but all eyes are on Nvidia. The chipmaker’s stock has soared roughly 1,000% since the launch of ChatGPT in November 2022, including a year-to-date gain of over 40%, making it the first company to surpass a $5 trillion market valuation last month.

Nvidia’s earnings are widely seen as a litmus test for technology stocks and the broader market rally.

Commodities and FX

The U.S. dollar held slightly higher, keeping the euro below $1.16 and strengthening against other major currencies. Gold stabilized at $4,060 an ounce after Friday losses, while Brent crude slipped 1% to $63.78 as Russian supply resumed at a previously disrupted hub.

Bitcoin, often a barometer for tech stocks, rebounded slightly from its largest weekly drop since March, trading at $95,000 after losing more than 10% last week.

Outlook

Markets are entering a pivotal week where U.S. labor data and corporate earnings particularly from Nvidia could influence stock sentiment and interest rate expectations. Geopolitical tensions in Asia add another layer of uncertainty, keeping investors cautious and highlighting the interlinked nature of global markets.

With information from Reuters.

Nov. 14 (UPI) — Jaguar Land Rover reported a loss of $637 million over the three months ending in September, when it was hit by a cyberattack that shut down production.

In the same quarter last year, the company reported $523 million in profits. The company also reported additional costs of $258 million, which included outside consultants and other support after the attack, the BBC reported.

The company had to shut down production through all of September and early October because the attack disabled its computer systems.

Retail sales dropped in all markets. In the United Kingdom they were down by 32.3%. Sales fell by 12.1% in Europe, 9% in North America, 22.5% in China and 15.8% in the Middle East and North Africa.

Revenues for the quarter fell 24%, from $8.5 billion last year to $6.4 billion, the company told BBC.

JLR also had phased out several models as part of a plan to become an all-electric brand. Those new models are now delayed until at least 2026. The JLR CFO Richard Molyneux wouldn’t confirm a launch date.

“We will launch it when it is perfectly right,” he said.

The English manufacturer has confirmed that all plants are back up and running at capacity or near it.

“JLR has made strong progress in recovering its operations safely and at pace after the cyber incident,” said outgoing JLR CEO Adrian Mardell, The Guardian reported. “In our response we prioritized client, retailer and supplier systems, and I am pleased to confirm that production of all our luxury brands has resumed.

“The speed of recovery is testament to the resilience and hard work of our colleagues. I am extremely grateful to all our people who have shown enormous commitment during this difficult time,” Mardell said.

Auto production in the United Kingdom was at its lowest level for September since 1952, said the Society of Motor Manufacturers and Traders.

Nov. 14 (UPI) — The European Union wants Google to dismantle its European-based advertising-technology business, which it has deemed a monopoly, but the tech firm said Friday it has another plan.

Google officials announced they submitted a compliance plan following the European Commission’s ad-tech decision, which Google will appeal.

“Our proposal fully addresses the EC’s decision without a disruptive breakup that would harm thousands of European publishers and advertisers who use Google tools to grow their business,” Google said in a blog post.

Google’s proposal “includes immediate product changes to end the specific practices the Commission challenges,” it said.

“For example, we are giving publishers the option to set different minimum prices for different bidders when using Google Ad Manager,” Google officials said.

They also propose addressing accusations of conflicts of interest by giving publishers and advertisers more choices and greater flexibility by “increasing the interoperability of our tools.”

Google officials said they intend to cooperate with the EC while it considers the proposal and “are committed to finding an effective solution that provides certainty and consistency for our customers across Europe, the United States and globally.”

The EC in September fined Google $3.5 billion in a search engine antitrust case and wants Google to break up its European business.

Google’s proposal seeks to avoid a breakup, but it does not provide any mechanisms for measuring the impact of proposed changes, according to Politico.

The EC has received Google’s proposal, which drew criticism from online publishers in Europe.

“Behavioral adjustments have been tested repeatedly over many years and have failed to rebalance this market,” Angela Mills Wade, European Publishers Council executive director, told Politico.

She said Google’s proposal, ultimately, won’t eliminate its ad-tech monopoly, which accounts for most of parent company Alphabet’s annual revenues, which topped $350 billion in 2024.

“Without structural change, Google will continue to own and control the tools and data flows that determine the terms of trade for the entire digital advertising ecosystem,” Wade added.

China’s AI models are quickly gaining traction in Silicon Valley, becoming integral to the operations of American companies and earning the praise of a growing list of tech leaders.

Their rapid ascent has highlighted the competitive edge that Chinese developers such as Alibaba, Z.ai, Moonshot, and MiniMax have been able to gain by offering so-called “open” language models at much lower costs than their rivals in the United States.

The trend has also cast a critical glare on the US’s efforts to stunt China’s tech sector with export controls on advanced chips, which have not stopped Chinese developers from approaching the capabilities of Silicon Valley’s tech giants.

Airbnb CEO Brian Chesky generated headlines in October when he revealed that the short-term rental platform had opted for Alibaba’s Qwen over OpenAI’s ChatGPT, praising the Chinese model as “fast and cheap”.

Social Capital CEO Chamath Palihapitiya revealed the same month that his company had migrated much of its work to Moonshot’s Kimi K2 as it was “way more performant” and “a ton cheaper” than models from OpenAI and Anthropic.

Programmers on social media also recently highlighted evidence that two popular US-developed coding assistants, Composer and Windsurf, were built on Chinese models.

The assistants’ developers, Cursor and Cognition AI, have not publicly confirmed their use of Chinese technology and did not respond to requests for comment, though Z.ai has said the speculation aligns with its “internal findings.”

Nathan Lambert, a machine learning researcher who founded the Atom Project, an initiative to promote open models in the US, said such public examples were the “tip of the iceberg”.

“Chinese open models have become a de facto standard among startups in the US,” Lambert told Al Jazeera.

“I’ve personally heard of many other high-profile cases, where the most valued and hyped American AI startups are starting training models on the likes of Qwen, Kimi, GLM or DeepSeek,” Lambert said, adding that many US firms have been reluctant to publicly disclose their use of Chinese technology.

While it is not possible to precisely quantify the usage of different AI models, industry data points to the rising popularity of Chinese offerings.

Chinese AI tools, including MiniMax’s M2, Z.ai’s GLM 4.6 and DeepSeek’s V3.2, took up seven spots among the 20 models with the most usage last week, according to data from OpenRouter, a platform that connects developers with AI models.

Among the top 10 models used for programming, four were developed by Chinese firms, according to OpenRouter.

In the open model space, China’s clear lead is evident, with cumulative downloads surpassing 540 million as of October, according to an Atom Project analysis of data from hosting platform Hugging Face.

Rui Ma, the founder of Tech Buzz China, said Chinese models are particularly attractive to fledgling startups, while “high-resource organisations” have gravitated towards premium US models.

“These are typically cost-conscious early-stage companies that experiment widely, and many of them will not survive,” Ma told Al Jazeera.

Unlike leading US platforms such as ChatGPT, China’s open-weight large language models make their trained parameters – called weights – publicly available.

While open-weight models do not generate licensing or subscription fees, running them at enterprise scale requires large amounts of computing power, which creators can offer to users at a cost.

Developers such as Beijing-based Z.ai and Hangzhou-based DeepSeek have reported using older-generation chips that are not subject to US export controls, in relatively small quantities, dramatically reducing training and hardware costs compared with their Silicon Valley rivals.

“The success of these Chinese models demonstrates the failure of export controls to limit China,” Toby Walsh, an expert in AI at the University of New South Wales, told Al Jazeera.

“Indeed, they’ve actually encouraged Chinese companies to be more resourceful and build better models that are smaller and are trained on and run on older generation hardware. Necessity is the mother of invention.”

With lower input costs, Chinese firms have been able to offer their services far more cheaply than their US peers.

In an analysis published by AllianceBernstein in February, DeepSeek’s pricing for its models at the time was estimated to be up to 40 times cheaper than OpenAI’s, for instance.

“I do think China’s AI progress has been underestimated, partly because the signal is fragmented,” Greg Slabaugh, a professor who studies AI at Queen Mary University of London, told Al Jazeera.

“Much of the uptake of Chinese models is in China. China’s scale in AI publications and patents has long been visible; the emergence of open-weight models simply makes that capability more globally consumable.”

Some industry analysts have likened China’s approach to AI to the strategy undertaken by Chinese firms in other industries, such as solar panels, that flooded markets with cheap goods.

“This is the solar panel playbook running on software,” Poe Zhao, a Beijing-based tech analyst, wrote last week in his Substack newsletter, Hello China Tech.

But while Chinese AI models have made inroads with their low cost, US tech giants are in a strong position to dominate the high-end market and highly regulated sectors where considerations such as national security are paramount, according to analysts.

Ma, the Tech Buzz China founder, said the development of AI could end up following a similar trajectory to the Android and iPhone platforms, the former of which has about three times as many users worldwide.

“Over the longer term – likely faster than what we saw in the mobile era – it’s entirely possible that AI adoption might follow similar economic dynamics. There are simply more users in the world who prioritise affordability than those who choose premium options,” Ma said.

“But that doesn’t mean the greatest margins or market capitalisation will exist at the low end; value may still concentrate where differentiation, performance and trust command a premium.”

“In Fortune 500 and regulated sectors, widespread adoption is probably not imminent,” said Slabaugh, the Queen Mary University of London professor, referring to the uptake of Chinese models.

“If there is a ‘rude awakening’, it may come on the pricing and flexibility front rather than from a sudden displacement of US models.”

Nov. 11 (UPI) — The Dow Jones Industrial Average posted a record high upon closing on Tuesday, while the Nasdaq Composite finished down as investors generally sold their tech holdings.

The Dow is comprised of 30 blue-chip stocks and closed at a record 47,927.96 after posting a 559.33-point rise during the day’s trading amid news that the federal government shutdown likely will end soon, according to CNBC.

The increase represented a 1.18% gain as investors, buoyed by news the shutdown is on track to end, bought shares in leading healthcare companies, including Merck, Amgen and Johnson & Johnson.

A general selloff of tech stocks accounted for the Nasdaq’s relatively poor performance on Tuesday and likely contributed to the Dow’s record close as investors switched to other investments.

“These tech companies, they’re cash-flow machines,” Logan Capital Management portfolio manager Bill Fitzpatrick told CNBC.

“It doesn’t take much, a little bit of negative news, for the sentiment to turn just a little bit, and you get an unwind that is more favorable to value equities,” Fitzpatrick explained.

The S&P 500 also posted a gain of 0.21% as it closed at 6,846.61. The tech-heavy Nasdaq, however, posted a 0.25% decrease to 23,468.30 by the end of the day’s trading.

Shares in Nvidia, the powerhouse maker of AI processing hardware, dropped by 2.96% as investor SoftBank Group sold all of its holdings in the chipmaker on Tuesday.

Nvidia’s share price closed at 193.16, which is a decrease of 5.89.

CoreWeave also adjusted down its revenue forecast for the year, which triggered a 15% decline in its share price.

The tech firm that specializes in artificial intelligence infrastructure cited delays by a data center affiliate as the cause of its lower revenue forecast.

California’s tech companies, the epicenter of the state’s economy, sent politicians a loud message this year: Back down from restrictive artificial intelligence regulation or they’ll leave.

The tactic appeared to have worked, activists said, because some politicians weakened or scrapped guardrails to mitigate AI’s biggest risks.

California Gov. Gavin Newsom rejected a bill aimed at making companion chatbots safer for children after the tech industry fought it. In his veto message, the governor raised concerns about placing broad limits on AI, which has sparked a massive investment spree and created new billionaires overnight around the San Francisco Bay Area.

Assembly Bill 1064 would have barred companion chatbot operators from making these AI systems available to minors unless the chatbots weren’t “foreseeably capable” of certain conduct, including encouraging a child to engage in self-harm. Newsom said he supported the goal, but feared it would unintentionally bar minors from using AI tools and learning how to use technology safely.

“We cannot prepare our youth for a future where AI is ubiquitous by preventing their use of these tools altogether,” he wrote in his veto message.

The bill’s veto was a blow to child safety advocates who had pushed it through the state Legislature and a win for tech industry groups that fought it. In social media ads, groups such as TechNet had urged the public to tell the governor to veto the bill because it would harm innovation and lead to students falling behind in school.

Organizations trying to rein in the world’s largest tech companies as they advance the powerful technology say the tech industry has become more empowered at the national and state levels.

Meta, Google, OpenAI, Apple and other major tech companies have strengthened their relationships with the Trump administration. Companies are funding new organizations and political action committees to push back against state AI policy while pouring money into lobbying.

In Sacramento, AI companies have lobbied behind the scenes for more freedom. California’s massive pool of engineering talent, tech investors and companies make it an attractive place for the tech industry, but companies are letting policymakers know that other states are also interested in attracting those investments and jobs. Big Tech is particularly sensitive to regulations in the Golden State because so many companies are headquartered there and must abide by its rules.

“We believe California can strike a better balance between protecting consumers and enabling responsible technological growth,” Robert Boykin, TechNet’s executive director for California and the Southwest, said in a statement.

Common Sense Media founder and Chief Executive Jim Steyer said tech lobbyists put tremendous pressure on Newsom to veto AB 1064. Common Sense Media, a nonprofit that rates and reviews technology and entertainment for families, sponsored the bill.

“They threaten to hurt the economy of California,” he said. “That’s the basic message from the tech companies.”

Advertising is among the tactics tech companies with deep pockets use to convince politicians to kill or weaken legislation. Even if the governor signs a bill, companies have at times sued to block new laws from taking effect.

“If you’re really trying to do something bold with tech policy, you have to jump over a lot of hurdles,” said David Evan Harris, senior policy advisor at the California Initiative for Technology and Democracy, which supported AB 1064. The group focuses on finding state-level solutions to threats that AI, disinformation and emerging technologies pose to democracy.

Tech companies have threatened to move their headquarters and jobs to other states or countries, a risk looming over politicians and regulators.

The California Chamber of Commerce, a broad-based business advocacy group that includes tech giants, launched a campaign this year that warned over-regulation could stifle innovation and hinder California.

“Making competition harder could cause California companies to expand elsewhere, costing the state’s economy billions,” the group said on its website.

From January to September, the California Chamber of Commerce spent $11.48 million lobbying California lawmakers and regulators on a variety of bills, filings to the California secretary of state show. During that period, Meta spent $4.13 million. A lobbying disclosure report shows that Meta paid the California Chamber of Commerce $3.1 million, making up the bulk of their spending. Google, which also paid TechNet and the California Chamber of Commerce, spent $2.39 million.

Amazon, Uber, DoorDash and other tech companies spent more than $1 million each. TechNet spent around $800,000.

The threat that California companies could move away has caught the attention of some politicians.

California Atty. Gen. Rob Bonta, who has investigated tech companies over child safety concerns, indicated that despite initial concern, his office wouldn’t oppose ChatGPT maker OpenAI’s restructuring plans. The new structure gives OpenAI’s nonprofit parent a stake in its for-profit public benefit corporation and clears the way for OpenAI to list its shares.

Bonta blessed the restructuring partly because of OpenAI’s pledge to stay in the state.

“Safety will be prioritized, as well as a commitment that OpenAI will remain right here in California,” he said in a statement last week. The AG’s office, which supervises charitable trusts and ensures these assets are used for public benefit, had been investigating OpenAI’s restructuring plan over the last year and a half.

OpenAI Chief Executive Sam Altman said he’s glad to stay in California.

“California is my home, and I love it here, and when I talked to Attorney General Bonta two weeks ago I made clear that we were not going to do what those other companies do and threaten to leave if sued,” he posted on X.

Critics — which included some tech leaders such as Elon Musk, Meta and former OpenAI executives as well as nonprofits and foundations — have raised concerns about OpenAI’s restructuring plan. Some warned it would allow startups to exploit charitable tax exemptions and let OpenAI prioritize financial gain over public good.

Lawmakers and advocacy groups say it’s been a mixed year for tech regulation. The governor signed Assembly Bill 56, which requires platforms to display labels for minors that warn about social media’s mental health harms. Another piece of signed legislation, Senate Bill 53, aims to make AI developers more transparent about safety risks and offers more whistleblower protections.

The governor also signed a bill that requires chatbot operators to have procedures to prevent the production of suicide or self-harm content. But advocacy groups, including Common Sense Media, removed their support for Senate Bill 243 because they said the tech industry pushed for changes that weakened its protections.

Newsom vetoed other legislation that the tech industry opposed, including Senate Bill 7, which requires employers to notify workers before deploying an “automated decision system” in hiring, promotions and other employment decisions.

Called the “No Robo Bosses Act,” the legislation didn’t clear the governor, who thought it was too broad.

“A lot of nuance was demonstrated in the lawmaking process about the balance between ensuring meaningful protections while also encouraging innovation,” said Julia Powles, a professor and executive director of the UCLA Institute for Technology, Law & Policy.

The battle over AI safety is far from over. Assemblymember Rebecca Bauer-Kahan (D-Orinda), who co-wrote AB 1064, said she plans to revive the legislation.

Child safety is an issue that both Democrats and Republicans are examining after parents sued AI companies such as OpenAI and Character.AI for allegedly contributing to their children’s suicides.

“The harm that these chatbots are causing feels so fast and furious, public and real that I thought we would have a different outcome,” Bauer-Kahan said. “It’s always fascinating to me when the outcome of policy feels to be disconnected from what I believe the public wants.”

Steyer from Common Sense Media said a new ballot initiative includes the AI safety protections that Newsom vetoed.

“That was a setback, but not an overall defeat,” he said about the veto of AB 1064. “This is a David and Goliath situation, and we are David.”

Authors: Christopher Jackson and Aaron Spitler*

Digital technologies, particularly AI, are accelerating democratic backsliding and revitalizing authoritarian governments. AI-focused companies have been forming close partnerships with government actors, often in ways that undermine democratic norms. Around the world, private firms are supplying or co-designing technologies that enhance mass surveillance, predictive policing, propaganda campaigns, and online censorship. In places like China, Russia, and Egypt, a blurring of boundaries between the state and the technology industry has led to serious consequences. This collusion has undercut privacy rights, stifled civil society, and diminished public accountability.

This dynamic is now playing out in the United States. Companies like Palantir and Paragon Solutions are providing government entities with powerful AI tools and analytics platforms, often under opaque contracts. In September, U.S. President Donald Trump approved the sale of TikTok to U.S. private entities friendly with the administration. Unchecked public-private integration within the technology industry poses serious risks for democratic societies, namely that it offers increased power to unaccountable actors. The focus of this article is to examine case studies on how these emerging alliances are enabling authoritarian practices, as well as what they might mean for the future of democratic societies.

Russia: Manipulating Digital Tools

In Russia, democratic norms under Vladimir Putin have eroded while Russian tech companies continue to work hand in glove with state authorities. Sberbank, the country’s largest financial institution, and their development of Kandinsky 2.1, an AI-powered, text-to-image tool owned by the firm, illustrate this long-running trend.

Despite the quality of its outputs compared to rivals like DALL-E, the solution came under fire in 2023 from veteran lawmaker Sergey Mironov, who argued that it generated images that tarnished Russia’s image. He would go on to charge that Kandinsky 2.1 was designed by “unfriendly states waging an informational and mental war” against the country.

Not long after, some in the tech space noticed that Kandinsky 2.1’s outputs changed. For instance, while the tool previously churned out images of zombies when prompted with “Z Patriot,” users noted that it now repeatedly produced pictures of hyper-masculine figures. Critics claim that this alteration not only represented an overt manipulation of the technology itself but also an attempt to curry favor with those in the government.

This episode shows how AI-powered tools are being specifically tailored to serve the needs of authorities. The modifications made to the model transformed it into an invaluable resource the government could use to amplify its messaging. As a result, users are no longer likely to see Kandinsky 2.1 as a tool for creativity, particularly if its outputs remain blatantly skewed. Developers in countries like Russia may look to this case for inspiration on how to succeed in restrictive political contexts.